This indicator adds to the functionality of Tr0sT's Zig Zag High Low Indicator by adding the RSI value above the higher-high to eyeball whether the current trend (signified by consecutive higher-highs and higher lows or consecutive lower highs and lower lows) is strengthening or weakening.
THEORY / METHODOLOGY:
If the uptrend is strong, the later pivot high will have a greater RSI number than the previous pivot high indicating an opportunity to go long. In a downtrend the lower high should have a lower RSI than the previous lower high indicating an opportunity to go short. If it does not, it is an indication that the trend is weakening.
ACTION:
If the ZigZag has higher highs and Higher lows and a strengthening RSI, look for Long opportunities on the lower time frame. If the ZigZag has lower highs and lower lows and a weakening RSI, look for Short opportunities on the lower time frame.
USAGE:
This methodology works best and produces the most opportunities when the markets are active, i.e. between 6AM-11AM EST
@Wryuery356788, can i have it the indicator whit lows sir? thx
kailevel
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@ocaptain thanks for this indicator. I wonder if my interpretation on how to use this unique Zig Zag and RSI is correct. This seems to combine both trend and momentum. This is my interpretation:
Normal Usage
a. Higher Highs, Rising RSI and Green RSI
- Action: Buy
- Interpret: indicate strong uptrend and strong upwards momentum.
b. Lower Lows, Falling RSI and Red RSI
- Action: Sell
- Indicate strong uptrend and strong downwards momentum
Counter Trend
a. Higher highs, Falling and Red RSI
- Action 1: Refrain from buying
- indicate falling upwards momentum in an uptrend
- Action 2: Buy on Weakness when lower channel has been hit and failed.
- indicate that the falling upwards momentum / retracement has ended and uptrend remains in tact.
b. Not sell when lower lows, Rising and Green RSI
- Action 1: Refrain from Selling
- indicate falling downwards momentum in a downtrend
- Action 2: Sell on Strength when upper Channel has been hit and failed.
- indicate that the falling downwards momentum / retracement has ended and downtrend remains in tact.
I don't know much about coding but really helpful if you can share code for RSI at Pivot lows.
I am mostly trading with divergence and this will help me a lot.
If possible please help with this.
Anyone here can help on this? please